NEW YORK >> Wall Street managed a modest advance today, rising for a fourth time in five days as investors weighed a mixed economic assessment from the Federal Reserve against disappointing earnings from Eli Lilly. Federal Reserve
report boosts stocksAssociated Press
Analysts were expecting some declines on profit-taking following two weeks of strong gains. But many investors remain optimistic that the market could sustain a real upward trend, since earnings news have largely been stronger than expected, they said.
"The market is really just digesting the huge bounce we have had," said Todd Clark, head of listed equity trading at Wells Fargo Securities. "We had a little bit of an excuse for profit-taking, among them were Eli Lilly's guidance. But it really just appears to be healthy consolidation."
The Dow Jones industrial average rose 44.11, or 0.5 percent, to close at 8,494.27, having dropped 88 points yesterday.
The broader market also finished higher. The Nasdaq composite index rose 27.43, or 2.1 percent, to 1,320.23. The Standard & Poor's 500 index gained 5.98, or 0.7 percent, to 896.14. The Russell 2000 index rose 6.29, or 1.7 percent, to 368.95.
The price of the Treasury's 10-year note was up 7/32 point today, while its yield fell to 4.23 percent from 4.27 percent yesterday. Two-year Treasury notes were up 1/32 point and yielded 2.16 percent, down from 2.20 percent yesterday.
Eli Lilly reported a 20 percent rise in earnings, meeting analysts' expectations, but the drug maker lowered its fourth-quarter outlook, citing added costs for its newer drugs. Shares fell $4.91 to $58.09.
The market, however, got a boost on some mixed comments from the Federal Reserve. In its survey of regional economic conditions, the Fed reported a sluggish economy, citing weak retail sales and a soft job market. The survey fostered hope of another interest rate cut when the Fed meets Nov. 6. Fed Chairman Alan Greenspan said separately that Americans' productivity should continue to grow.
Overseas, Japan's Nikkei stock average finished higher 0.3 percent. In Europe, Germany's DAX index was down 4.5 percent, France's CAC-40 fell 4.1 percent, and Britain's FTSE 100 dropped 2.7 percent.